SF 489 (LSB 1613SV (2) 86)

SENATE FILE 489

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SSB 1267)

A BILL FOR

An Act relating to underground storage tanks, including by establishing an underground storage tank cost share grant program and fund, making an appropriation, and extending the environmental protection surcharge.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.145, subsection 2, paragraph a, subparagraph (1), Code 2015, is amended to read as follows:
   (1)  First, three one million five hundred seven hundred fifty thousand dollars per quarter shall be deposited into and credited to the Iowa comprehensive petroleum underground storage tank fund created in section 455G.3, and the moneys so deposited are a continuing appropriation for expenditure under chapter 455G, and moneys so appropriated shall not be used for other purposes.
    Sec. 2.  Section 321.145, subsection 2, paragraph a, Code 2015, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (3)  Third, one million seven hundred fifty thousand dollars per quarter shall be deposited into and credited to the underground storage tank cost share grant program fund created in section 455G.6A. The moneys so deposited are a continuing appropriation for expenditure under that section and shall not be used for other purposes.
    Sec. 3.  Section 424.19, Code 2015, is amended to read as follows:
   424.19  Future repeal.

   This chapter is repealed effective June 30, 2016 2026.
    Sec. 4.  NEW SECTION.  455G.6A  Underground storage tank cost share grant program and fund.
   1.  For purposes of this section, “grant program fund” means the underground storage tank cost share grant program fund established by this section.
   2.  An underground storage tank cost share grant program fund is created as a separate fund in the state treasury under the control of the board. The grant program fund is separate from the general fund of the state.
   3.  a.  The grant program fund is composed of moneys deposited in the fund pursuant to section 321.145, subsection 2, paragraph “a”, subparagraph (3), other moneys appropriated by the general assembly for deposit in the grant program fund, and moneys available to and obtained or accepted by the board from the United States government or private sources for placement in the grant program fund.
   b.  The recapture of awards or penalties, or other repayments of moneys originating from the grant program fund, shall be deposited into the grant program fund.
   c.  Notwithstanding section 12C.7, interest or earnings on moneys in the grant program fund shall be credited to the grant program fund.
   d.  Notwithstanding section 8.33, unencumbered and unobligated moneys remaining in the grant program fund at the close of each fiscal year shall not revert but shall remain available in the grant program fund for the purposes of this section.
   e.  Any owner or operator of a location where petroleum is marketed in this state is eligible to apply for and receive funding from the grant program.
   4.  The grant program fund shall be administered by the board. 
   5.  Moneys in the grant program fund are appropriated to and shall be used by the board as provided in this subsection.
   a.  Up to fifty thousand dollars shall be allocated each fiscal year to the board to support the administration of the grant program. The board may use up to one and one-half percent of the moneys in the grant program fund each fiscal year to market the grant program. Otherwise the moneys shall not be transferred, used, obligated, appropriated, or otherwise encumbered except to allocate as grants by the board in accordance with this subsection.
   b.  The board shall establish a grant program to award grants from moneys in the grant program fund to eligible applicants to replace underground storage tank infrastructure, including but not limited to tanks, lines, pipes, hoses, connections, seals, and pumps.
   (1)  The board shall adopt rules pursuant to chapter 17A for implementation and administration of the grant program and grant program fund.
   (2)  At a minimum, replacement infrastructure must be listed by an independent testing laboratory as compatible for use with ethanol blended gasoline classified as E-85.
   (3)  An eligible applicant may be awarded a grant worth up to fifty percent of the cost to replace infrastructure, with a maximum grant of one hundred thousand dollars. The total grants awarded to an eligible applicant shall not exceed one million dollars per calendar year. 
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill creates an underground storage tank cost share grant program and a corresponding fund within the state treasury in Code chapter 455G. The bill reduces the amount deposited in the Iowa comprehensive petroleum underground storage tank fund each quarter from $3.5 million to $1.75 million. The grant program fund shall be credited $1.75 million per quarter from the statutory allocations fund pursuant to Code section 321.145. The grant program fund shall be administered by the Iowa comprehensive petroleum underground storage tank fund board. The grant program funds shall be allocated as grants by the board to replace underground storage tank infrastructure, including but not limited to tanks, lines, pipes, hoses, connections, seals, and pumps. At a minimum, replacement infrastructure must be listed by an independent testing laboratory as compatible for use with ethanol blended gasoline classified as E-85. 
   Any owner or operator of a location where petroleum is marketed in this state is eligible to apply for and receive funding from the grant program. An eligible applicant may be awarded a grant worth up to 50 percent of the cost to replace infrastructure, with a maximum grant of $100,000. Total grants awarded to an eligible applicant shall not exceed $1 million per calendar year. The bill requires the Iowa comprehensive petroleum underground storage tank fund board to adopt rules to implement and administer the grant program and fund.
   The bill extends the duration of the environmental protection charge on petroleum diminution collected from underground storage tank owners or operators until June 30, 2026.